OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Higher |
| Soybean Futures: | 6 to 8 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 8 to 10 Higher |
MILK:
Class III milk futures had a nice bounce at the end of last week, but the question is whether that will continue. Underlying cash showed some strength, but sellers continue to offer supply to the market. An increase in demand would turn buyers aggressive purchasing was sellers have to offer and then some. Milk production is steady to slowly improved as the hot weather is now behind and cow comfort has improved. Some milk plants continue to take a hard line on milk production, not allowing for any expansions or significant increases in production on existing facilities. Others are allowing expansions and increased production. The current supply is sufficient for demand.
CHEESE:
Cheese has yet to find solid support with the usual buying interest in September not being sufficient to support the market. There could be some increased buying interest this month if demand improves and buyers want to increase ownership ahead of the holiday season.
BUTTER:
The buying interest in butter has been a sight to behold. Buyers remain aggressive even at record prices. The large decline of inventory in August was a surprise with a continued strong decline in September possible. This set the stage for the current market. The current market is real and there does not seem to be a void under it. However, it will come to an end at some time.
